The Economist, with its cover of a euro coming down in flames, asks "Is this really the end?" and answers that, basically, yes it is. A senior minister explained to me a few days ago that contingency planning is now well under way, and takes in both preparations at home for a shock on the banks and work with consulates and embassies abroad, specifically in the eurozone, to anticipate social and banking disruption when it all goes wrong.See, now I have a dilemma with this report. On the one hand Government ministers would be bloody stupid if they weren't conjuring up contingency plans for a Euro collapse, yet on the other hand they are bloody stupid. And to top it off Benedict Brogan is an apologist for Dave, whose 'lack of talents' knows no bounds. So what to make of it? One gets the feeling, that I've expressed before on here, that groundwork is being prepared for the blame game.
The reality seems pretty clear; the Euro crisis is coming to a conclusion, despite the EU rhetoric. The fundamental differences between German and France have not been resolved yet the 'record' has not changed for months, so one is inclined to accept this final paragraph from Brogan:
The betting in Team Dave seems to be that the game is as good as up for the single currency. "It's in our interests that they keep playing for time because that gives us more time to prepare," the minister told me. Anyone who has any kind of exposure to the euro – a euro mortgage for example, or a euro account, or euro contracts – should be taking advice now on how to mitigate the risk: politicians in the eurozone have their heads in the sand, and won't admit that behind the scenes officials across europe are scrambling to fill the sandbags while there is still time.But then we remember that Mr Brogan writes crap like this and this and this. So what to believe? Probably like a broken watch which is still right twice a day, Brogan may have it correct this time, but if so, that instils another rather large concern - we're facing the biggest mass sovereign default in history, so if Cameron is really organising the sandbagging, then God help us.